From Seismic to Simulation

Integrated Reservoir Studies

Can S. Bakiler

Istanbul Technical University
Petroleum and Natural Gas Engineering Department
18.3.2013
Agenda:

Integrated Reservoir Management concept and procedures

Integrated team structures

Contribution of different disciplines to Reserve Calculation and
Performance Prediction Methods




2
Definition:

Management:

Judicious* use of means to accomplish an end. (Webster)

Reservoir Management:

Judicious use of available resources to maximize economic recovery
(Thakur, 1991)

Application of state-of-theart technology to a known reservoir system
within a given management environment (Wiggins and Startzman, 1990)

..Use of available resources (human, technological and financial) to
maximize profits from a reservoir by optimizing recovery while
minimizing capital investments and operating expenses (Satter et al, 1992)

* Judicious = wise, sensible


3
General Characteristics of Reservoir Management:

It requires and makes use of all related resources

It includes the complete system, from reservoir to sales point

It is continuous and long-term, over the life of a reservoir

It concentrates on economic optimization




(from Fowler et al, 1996)
4
History:

Before 1970s
Reservoir Engineering is considered synonymous with reservoir management
Minimal interaction between disciplines
Material Balance and Decline Curve Analysis methods used for reservoir studies
Conventional organization types

1970s 1980s
Value of synergism between engineering and geology is emphasized (Craig et
al.,1977, Harris and Hewitt,1977)
Interdisciplinary cooperation encouraged
Development of numerical models
Downturn in petroleum economics in 1980s. More emphasis on decreasing costs

After 1990s
Introduction of Integrated Reservoir Management Processes and workflows
Multidisciplinary team structures
Enhancement of reservoir (static and dynamic) models


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Developments enabling more efficient reservoir management:

Enhancements in modeling software (Static and dynamic)

Improvements in data acquisition and interpretation tools and techniques:
Improvements in acquisition, processing and interpretation of 3D seismic
Enhancements in logging tools and petrophysical analysis methods
Electronic gauges and test interpretation technology

Computer Technology

Increased awareness for the benefits of
integrated studies. Multidisciplinary task
forces.

Improvements in drilling and completion
technology

Depleting reserves and requirement to
increase recoveries from existing fields
(from Schlumberger)
6
Management
Reservoir Management Team:
Reservoir
Management
Team
E
c
o
n
o
m
i
c
s
E
n
v
i
r
o
n
m
e
n
t

(from Satter et al, 1994)
7
Acquisition Exploration Development Production Abandonment
Conventional Organization:
Flexible Organization:
Acquisition Abandonment
Planning
Exploration
Development
Production
Administration
(from Patterson and Alteiri, 1993)
8
Analogy for
Conventional Approach versus Integrated Team Approach:
Relay Team versus Basketball Team
9
Conventional Organization:


General Manager
Drilling/Completion
Manager
Production Manager Exploration Manager
Geology Dpt Head
Geophysics Dpt Head
Petrophysics Dpt Head
...
QHSE
Reservoir Eng Dpt Head
Production Eng Dpt Head
Facilities Dpt Head
...
Drilling Eng Dpt Head
Completion Eng Dpt Head
...
Individuals working for a specific reservoir are under their own
bosses/functional heads.
Members of the reservoir study do not share the same working
environment.
They have different objectives and priorities.
Legal,
Procurement,
Finance, etc
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Multidisciplinary Team Organization:


Asset Manager
Operations Manager
Drilling/Completion
Manager
Subsurface Team
Manager
Geologist
Geophysicist
Petrophysicist
Reservoir Engineer
QHSE
Drilling Engineer
Completion Engineer
Production Technologist

Facilities Engineer
...
Asset manager has the responsibility of the work.
Multidisciplinary team works together as a task force, under
the asset manager.
All team members share the same objective.
Team members share the same working environment.
Legal,
Procurement,
Finance, etc.
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Asset Manager
Facilities Manager
Drilling/Completion
Manager
Subsurface Team
Manager
QHSE
Geology Team
Leader
Reservoir Engineering
Team leader
Geomechanics
Reservoir Engineer
Geomodeler
Structural Geologist
Petrophysicist
Geophysicist
Sedimentologist
Simulation Engineer
PTA Specialist
PVT Specialist
Integrated Reservoir Management Team Organization Chart
Subsurface Team Structure
Example 1
Operations Manager
Procurement and
Logistics
Legal
Finance
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Asset Manager
Operations Manager
Drilling/Completion
Manager
Subsurface Team
Manager
.....
Geologist
Reservoir Engineer
Petrophysicist
Geophysicist
Integrated Reservoir Management Team Organization Chart
Subsurface Team Structure
Example 2
The teams are structured based on the specific needs of the reservoir system at
hand
The team structures and personnel will change in different phases, as required
13
Reservoir Management Process:
Completing
Evaluating
Monitoring
Implementing
Developing Plan
Setting Strategy
(from Satter et al, 1994)
Revising
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Geology:

Some geological disciplines taking part in the reservoir management work are :
Structural geologist, sedimentologist, geomodeler, production geologist

Role and Tasks of the Geologist in Reservoir Management:

Regional Studies/Depositional Environment Study:
For establishing the structural framework, quality and
vertical/areal distribution of the reservoir rock.

Core Studies (Core Description/Sedimentology):
For defining the rock types, flow units, mineralogy,
depositional environment,diagenesis.

Stratigraphic Correlation:
Picking the top and bottom of the reservoir layers from
well logs and defining their distribution in the reservoir where no
log data is available
Contribution of Disciplines to Integrated Reservoir Studies
15
Role and Tasks of the Geologist in Reservoir Management:

Structural Model Construction: Combines the formation top, thickness and
fault information from geology, geophysics and petrophysical anaysis to create
the geometric frame work of the geological (static) model.

Population of the geological (static) model:
Populates the model with data from:
a. petrophysical studies (core and log analysis : porosity, permeability,
fluid contacts, initial saturation distribution),
b. Reservoir engineering studies ( fluid sample and flow test analysis :
oil, water and gas properties, reservoir pressure, system permeability,
fluid contacts).

Volumetrics: Calculates the original oil and gas in place using the
geological (static) model.

Contribution to well location, well design, well proposal and drilling
program



Contribution of Disciplines to Integrated Reservoir Studies
16
Depositional System versus Recovery for Gulf Coast Reservoirs:
(from SEG EAGE, DISC 2009)
Contribution of Disciplines to Integrated Reservoir Studies
17
Geophysics:

Geophysicist is responble for the acquisition, processing
and interpretation of seismic data to define the reservoir
top, thickness, faults (and some times reservoir and fluid
propertydistributions) where well control is not available.

Role and Tasks of the Geophysicist
in Reservoir Management:

Revision and QC of the available 2D and 3D data
Generation of Synthetic Seismograms
Mapping of the time structures
Creation of Depth Maps
Interpretation of faults
Attribute Analysis
Surveillance of fluid movement in the reservoir with
4D Seismic and crosswell tomography




Contribution of Disciplines to Integrated Reservoir Studies
18
Example for Saturation Changes Captured by 4D seismic:
(from Thakur, 2008)
4D Seismic Data (Repetition of 3D Seismic at different time periods) can be used for:

Flow (Saturation change) surveillance - tracking of the changes in OWC, GOC, flood fronts
(waterflooding, steam flooding, gas injection, etc.).
Contribution of Disciplines to Integrated Reservoir Studies
19
Cross Well Seismic (Cross Well Tomography) :
Cross well seismic is performed to gain information on reservoir continuity, fluid
saturation change and temperature change (in thermal floods) in between wells.
Contribution of Disciplines to Integrated Reservoir Studies
20
figure from: Schlumberger
figure from: www.netl.doe.gov
Contribution of Disciplines to Integrated Reservoir Studies
Examples for Cross Well Seismic Applications:
21
Petrophysics :

The petrophysicist provides information on the rock properties and
the fluid content of the reservoir. They make use of core analysis
and wireline log analysis in their work.

Role and Tasks of the Petrophysicists in Reservoir Management :

Revision and QC of the available data

Interpretation of electrical logs and core data for lithology,
porosity, permeability and fluid saturation distribution

Identification of different rock types in the reservoir

Deriving porosity vs permeability relations

Specification of uncertainties and
need for additional data acquisition
Contribution of Disciplines to Integrated Reservoir Studies
22
Role and Tasks of the Geomechanics in Reservoir
Management

Contribute to well construction design
Casing Design
Mud Weight
Well bore stability Planning of the well trajectories

Reservoir compaction

Sand Production

Contribute to geological (static model)
Structural framework/faulting
Natural Fracture System characterization


Contribution of Disciplines to Integrated Reservoir Studies
23
Reservoir Engineering :

Responsible for the characterization of fluid flow in the reservoir. Work scope
includes fluid data, relative permeability data, identification of recovery mechanisms,
modeling, production scenarios, performance predictions and optimization of
recovery by the application of waterflooding and EOR methods.

Role and Tasks of the Reservoir Engineer in Reservoir Management :

Fluid Properties
QC of available data

Preparation of data acquisition program for
sampling and analysis

Decide on areal and vertical variances in fluid characteristics
Compartmentalization
Gravitational segregation

PVT analysis


Contribution of Disciplines to Integrated Reservoir Studies
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Role and Tasks of the Reservoir Engineer in Reservoir Management :

Rock Properties
QC of available data
Decsription of Flow Units with Geologist and Petrophysicist
Preparation of data acquisition program for SCAL analysis
Relative Permeability Curves (oil/water, oil/gas)
Residual oil saturation
Capillary Pressure Curves (drainage and imbibition)
Wettability

Well Test Design and Analysis (DST/Downhole Repeat Formation Tester/Flow
Tests-PTA for determining permeability, skin, pressure, PI, flow boundaries, etc. )

Identification of Reservoir Recovery Mechanism

Aquifer Description




Contribution of Disciplines to Integrated Reservoir Studies
25

Role and Tasks of the Reservoir Engineer in Reservoir Management :

Volumetric and Performance Based (Material Balance, Decline Curve
Analysis, Numerical Simulation) Reserve Estimations

Contribution to Static (Geological) Model
(Fluid contacts, fluid saturation distribution, fluid
properties, compartmentalization)

Dynamic Model
Upscaling from Static Model
Initialization
History Matching
Performance Prediction for different
development scenarios

Waterflooding/EOR planning and application


Contribution of Disciplines to Integrated Reservoir Studies
26
Production Technologist (Production Engineer) :

Responsible for the flow of reservoir fluids from the near wellbore to the surface.
The work scope includes improvement of well productivity with stimulation
treatments, perforation and completion techniques, artificial lift methods, nodal
analysis for determining bottle necks in the system, and flow assurance issues.

Role and Tasks of the Production Technologist in Reservoir
Management:

Flow assurance (Scaling, Paraffin Deposition, Corrosion, Gas Hydrates, Emulsion,
Foaming, Liquid Loading in gas wells, Sand Production)

Preparation of stimulation programs (acid treatments, hydraulic fracturing)

Diagnostic analysis for the improvement of production systems (nodal
analysis)

Artificial Lift selection and application

Periodic testing of well production rates

Contribution of Disciplines to Integrated Reservoir Studies
27
Corrosion Scaling
Paraffin (Wax)
Deposition
Examples for Flow Assurance Problems which Production Technologist has to deal with:
Asphaltenes & Wax
Contribution of Disciplines to Integrated Reservoir Studies
Gas Hydrate Formation

Foaming

Emulsion
Sand Production
28
Facility Engineer :

Responsible for the design and operation of all surface facilities for maximizing the
profits.

Role and Tasks of the Facility Engineer in Reservoir Management :

Conceptual design of the surface network:
Gathering systems (flow lines, manifolds)
Stations (Heaters, separators, flow measurement devices for
dewatering, degassing and metering of the produced fluids)
Tanks
Transportation strategy and system

Preparation of data sheets for the procurement of the surface equipment

Operate and maintain surface facilities, solve operational problems, minimize
operating costs

Review and update the facilities (upgrade/downgrade) as necessary


Contribution of Disciplines to Integrated Reservoir Studies
29
Drilling Engineer :

Responsible for the design and drilling of wells based on the data acquisition and
production strategy set in the development planning phase.

Role and Tasks of the Drilling Engineer in Reservoir Management :

Mud Design (to increase effectivity, decrease cost, decrease formation
damage and improve safety by input from Geologist, Petrophysicist,
Reservoir Engineer and Geomechanical Engineer for type, components,
weight)

Well Design (Vertical, Inclined, Horizontal, Single lateral,
Multilateral etc)

Preparation and execution of drilling programs

Providing support for the acquisition of data required by
the subsurface team (cores, logs, DSTs)




(figure from Cavender, 2004, SPE 86926)
Contribution of Disciplines to Integrated Reservoir Studies
30
Available Tools for Reservoir Performance Predicton:


Based on the objective of the work, available data and resources,
following methods can be used for this work:

1. Volumetric Methods

2. Decline Curve Analysis

3. Material Balance

4. Numerical Modeling







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Application Periods for Reserve Estimate and Reservoir Performance
Prediction Methods :
time
o
i
l

r
a
t
e

r
e
s
e
r
v
o
i
r

p
r
e
s
s
u
r
e

Volumetric
Material Balance
Decline Curve Analysis
Numerical Modeling
Development
Exploration,
Discovery,
Appraisal
Analog Data Field Data
Continued Production
32
Volumetric Method:









o
w
B
S h A
HCIP

1
A : Area of the net pay (Geological studies, structure,
Fluid contacts-OWC/GOC)
h : Net thickness of the pay zone (Logs, cross-
section studies)
: Porosity (Logs, cores)
S
w
: Water saturation (logs, cores)
B
o
: Oil Formation Volume Factor (PVT Analysis)

Deterministic or stochastic methods are used to calculate the HCIP and reserves.
The data is either derived from the acquired field data, or retrieved from analogs.
Contributing Disciplines: Geology, Geophysics, Petrophysics,
Reservoir Engineering
Reserve is calculated by multiplying the HCIP with the expected
recovery factor.
33
Decline Curve Method :







The method is used to estimate
recovery or economic life.

The method is based on extrapolating
the observed decline trend to an economic limit.

Most Commonly used decline curves for oil reservoirs :
Log of Production Rate versus Time,
Production rate versus Cumulative Production,
Log of Watercut or Oilcut versus Cumulative Oil Production.

Basic Assumptions in Decline Curve Analysis:
Sufficient production performance data is available, and a declining trend
has been established
Ongoing field operations will continue in the future with the same operational
characteristics and without interruptions.

Minimum Required Data: Historical oil, gas and water production rate data

Contributing Disciplines: Production Engineering, Reservoir Engineering


34
Material Balance Method:

The method is used to estimate
the original HCIP, ultimate primary
recovery or aquifer influx in a reservoir.

It is based on the law of conservation of mass.


The basic assumptions of this method are:
1. Homogeneous tank model (rock and fluid properties are the same
throughout the reservoir)
2. Fluid Production and injection occur at single point
3. There is no direction to fluid flow

Minimum Required Data:Production and Injection volumes, pressure, fluid
properties versus pressure.

Contributing Discipline : Reservoir Engineering



Change in rock
and fluid
volumes due to
Depletion or
Accumulation
In:
Injection
Aquifer
Out:
Oil, Gas
Water Production
35
Numerical Modeling:

Numerical Modeling of the reservoirs involve the building of an integrated
model based on geological, geophysical, petrophysical and engineering data.


The purpose is of building a numerical model is to create a model which has
the characteristics of the reservoir, so that the numerical model performance
will be identical to actual reservoir performance. The model is used to predict
the reservoir response under different production scenarios.


In numerical modeling, the
reservoir is areally and vertically
divided into many tanks (grid
blocks) to take the reservoir
heterogeneity into account.




36
Numerical Models are configured in two steps:

Geological (Static) Model

- Contains the reservoir characterization information
(i.e. structure tops, faults, layer thickness, porosity, permeability, fluid
saturations distributions)

- Owner of the Static Model is the Geologist. Geophysicist, Petrophysicist,
Geomechanical Engineer , Reservoir Engineer contributes to the work.


Numerical Simulation (Dynamic) Model

- Contains Geological model + Data for fluid flow and production
(i.e. fluid properties, relative permeabilities, well and completion locations,
production and injection rates, well controls)

- Owner of the Dynamic Model is the Reservoir Engineer. Geologist,
Petrophysicist, Geophysicist, Production Engineer, Drilling and Completion
Engineer all contribute to the work as required.


37
Build
Structural
Model
Populate
Model
Structure top
(depth map)
Layer Gross
Thickness
Fault
Description
Permeability
Distribution
Porosity
Distribution
Fluid Contacts and
Saturation Distribution


Net/Gross
Thickness Ratio
STATIC MODEL
Prediction
Validation
(History
Matching)
Upscale &
Initialize
Model
OIIP
GIIP
DYNAMIC MODEL
Relative
Permeability
Data Fluid Properties
Q
o
Q
w
Q
g
P

vs
time

Well Information &
Production History
Contribution of Disciplines for the Numerical Modeling Process:
Reservoir Characterization
Refinement of the Reservoir Characterization
Predicting Reservoir Performance for different scenarios
Geologist
Petrophysicist
Geophysicist
Geologist
Geophysicist
Geologist
Petrophysicist
Petrophysicist
Geologist
Reservoir Eng
Geophysicist
Reservoir Eng
Reservoir Eng
Production Eng
Geologist
Petrophysicist
Reservoir Eng
Petrophysicist
Geologist
Reservoir Eng
Production Eng
Geophysicist
38
Reservoir Eng
Geologist
Geophysicist
Petrophysicist

Example for the Contribution of different Disciplines for Numerical Modeling:

Source of Fluid Contacts and Saturation Distribution Information:
Well Log Interpretation

Petrophysicist
Geologist
Well Flow Tests
(DST, Production Tests)

Reservoir Engineer
Production Engineer
Capillary Pressure Measurements

Reservoir Engineers
Petrophysicists

4D Seismic Interpretation

Geophysicist

Regional Geology

Geologist

Repeat Formation Tester
(Fluid gradient and sampling)

Reservoir Engineer
39
History Prediction
Oil Rate
time
Depletion (Base Case Continuation
of the existing strategy)
Infill & Waterflood
Waterflood
Example for Model Study Output for Performance Prediction:

Example for Production Forecasts for Different Development Scenarios
40


Efficient Reservoir Management is made possible by technical
developments in computer technology, available software, data
acquisation and interpretation tools, improvements in drilling and
completion technology and depleting reserves.

Multidisciplinary study is essential for the proper management of
reservoir systems throughout their full life cycle.

Reservoir management requires the involvement of all related
resources and utilization of the state of the art technology to maximize
economic recovery.

Multidisciplinary team organizations require all related disciplines to
work under an asset manager, sharing the same objectives and the
same working environment.




41
Thank You






cansbakiler@yahoo.com.tr
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